Bitcoin started a major decline after it broke the $9,500 support against the US Dollar. BTC is now trading below $9,000 and it remains at a risk of more losses below $8,800.
- Bitcoin is gaining bearish momentum below the $9,500 and $9,200 support levels.
- The price traded as low as $8,813 and it is currently correcting higher.
- There is a crucial bearish trend line forming with resistance near $9,100 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but it is likely to struggle near $9,100 and $9,300.
Bitcoin Turns Bearish
This past week, bitcoin started a major decline after it broke the $9,500 support against the US Dollar. BTC gained bearish momentum below the $9,300 support level and the 100 simple moving average (4-hours).
It opened the doors for more losses and the price even broke the $9,000 support. A new monthly low is formed near $8,813 and the price is currently correcting higher. An initial resistance is near the $9,000 and $9,040 levels.
The 23.6% Fib retracement level of the downward move from the $9,778 high to $8,813 low is also near the $9,040 level. More importantly, there is a crucial bearish trend line forming with resistance near $9,100 on the 4-hours chart of the BTC/USD pair.
Bitcoin price dives below $9,000: Source: TradingView.com
If bitcoin price breaks the trend line resistance, it could continue to recover towards the main $9,300 resistance. The 100 simple moving average (4-hours) is also waiting near the $9,300 resistance area.
Therefore, the bulls are likely to face a lot of hurdles near the $9,100 and $9,300 levels. To move into a positive zone, the price must settle above $9,300 and the 100 SMA.
More Losses in BTC?
If bitcoin struggles to clear the $9,100 and $9,300 resistance levels, there is a risk of more losses. An initial support is near the $8,813 low and $8,800.
A successful bearish break below the $8,800 support zone could open the doors for a larger decline. In the mentioned case, the bears are likely to aim a test of the $8,500 support level in the near term.
Technical indicators
4 hours MACD – The MACD for BTC/USD is gaining pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 40 level.
Major Support Level – $8,800
Major Resistance Level – $9,300
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by Aayush Jindal on June 28, 2020 at 09:58AM
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